As part of the government's plan to combat the rising cost of living in the Netherlands, it has been confirmed that lower taxes on petrol and energy will come into effect on April 1 and July 1 respectively.

Lower petrol and energy taxes in the Netherlands

Last week, the government revealed plans to temporarily cap taxes placed on petrol and energy in the Netherlands, as families and households across the country face rapidly rising costs and record-breaking inflation levels. 

The cabinet had already agreed to set aside millions in order to allow municipalities to provide households with an allowance to help cover the rising cost of electricity. Households with the lowest incomes are set to receive 800 euros from their local municipality as soon as possible, while the average family will likely receive 200 euros as part of the government's energy allowance scheme. 

In addition to the energy allowance, the government has decided to lower excise duties on fuel by 17 cents per litre of petrol and 11 cents per litre of diesel from April 1, 2022. The VAT on energy will also be capped at 9 percent from July 1, 2022. While no concrete end date has been set, the capped rates are set to remain in place until at least the end of the year.

Rutte says it's possible more measures will follow before end of 2022

While members of the public, financial experts, and municipalities such as Amsterdam have voiced concerns that the government isn’t doing enough to support citizens as the cost of living continues to rise, Prime Minister Mark Rutte has emphasised that the measures that have already been announced will cost the Dutch government around 2,8 billion euros.

However, this weekend the Prime Minister said in an interview with WNL that he “does not rule out” the possibility of additional measures in order to boost purchasing power and limit the impact of rising prices, but that “there are limits to what we can do.”